Analysis of Globalization and International Business

This assignment provides an in-depth analysis of globalization and its impact on international business. It includes a review of research papers on outward foreign direct investment from emerging countries, as well as discussions on entry modes, transactional and institutional alignment, and the development of waste-to-energy industries in China. The assignment also touches on global merger and acquisition activity, brand image, and consumer behavior, providing a comprehensive understanding of globalization and its effects on international business.

Research Project

Abstract
The present report is based on Tesco, one of the leading global sector retail firm of UK. Report
will shed light on the concept of globalisation and how it is useful for Tesco in understanding the
emerging market needs and trends. It will provide a deep insight about the mode which is
available for taking entry into the emerging markets by taking into consideration all the macro
environmental factors with the help of PESTEL analysis.

TABLE OF CONTENTS
TABLE OF CONTENTS..............................................................................................................2
LO 1.................................................................................................................................................3
P1. Preparing research proposal..................................................................................................3
Background of the study..............................................................................................................3
Research aim and objectives........................................................................................................3
Rationale of the study..................................................................................................................4
Significance of the study.............................................................................................................4
Literature review..........................................................................................................................5
Theme 1: Overview of globalization...........................................................................................5
Theme 2: Different entry modes associated with globalization..................................................5
Research methodology.................................................................................................................7
Gantt chart / Timeline..................................................................................................................8
P2. Research methodology........................................................................................................10
LO 2...............................................................................................................................................13
P3.Conducting primary & secondary research project considering costs, access & ethical
issues..........................................................................................................................................13
P4. Data analysis and findings...................................................................................................14
LO 3...............................................................................................................................................20
P5...............................................................................................................................................20
Enclosed in PPT.........................................................................................................................20
Conclusion.................................................................................................................................20
Recommendations......................................................................................................................21
LO 4...............................................................................................................................................22

P6. Reflection............................................................................................................................22
P7. Alternative research methodology.......................................................................................22
REFERENCES..............................................................................................................................24

LO 1
P1. Preparing research proposal
Topic: To assess entry strategies that can be employed by UK retail sector firms for entering in
emerging market: A study on Tesco
Background of the study
Entering the emerging market with a strategy can help companies in acquiring the current
market & business opportunities, competitive advantage. For a company who is thinking of
entering into emerging market, a proper market entry strategy should be formulated and designed
in line with the business goals and objectives. A market entry strategy is considered as the
distribution plan and method of delivering company's goods or services to the new target
customers and market as well. Before entering into market and developing of market strategies it
is very important to make a detailed analysis of the present market competitors and its possible
customers. A company entering into new market should make a deep study on the current market
trends, customers demand, preferences and buying behaviour, government policies and business
plans & strategies as followed by the competitors firms in growing and sustaining in the
competitive world seeking competitive advantages. The study here is based on Tesco, which is a
British multinational groceries and general merchandise retailer store. Tesco was founded by
Jack Cohen in the year 1919 as group of market stalls. Tesco deals in wide range of products and
services such as books retailing, clothing, electronics, petrol, software, financial and internet
services, telecoms. Tesco is the third and ninth largest retailer in the world when measured in
terms of gross revenues and revenues concept. Globalization is defined as a process of
interacting of one country economy with the economy of the world. Globalisation has lead to
increase in entry in new emerging market (Cassia and Magno, 2015). Foreign direct investment
is defined as a process of investment undertaken by any business firm or individual because of
interest in business operations located in other country. It comes with ownership or controlling
interest in foreign company. The research project will define strategies of making entry into the
emerging market by UK retail sector. Also, report will define about research methodology and
research philosophy used along data collection & analysing method for completing this project.
Research aim and objectives
Aim:

The aim behind imitating current study is to assess entry strategies that can be employed
by Tesco for entering in emerging market (India).
Objectives
 To assess the trend of globalization.
 To evaluate benefits associated with the aspect of globalization.
 To identify entry mode which assist Tesco in entering in emerging market like India.
 To recommend strategies to Tesco in relation to attaining benefits from strategy such as
globalization.
Rationale of the study
The reason behind conducting such study on entry strategies in the emerging market is to
assist companies like Tesco in making easy and cost effective entry in the foreign market. With
the help of such research study company can assess the mode of entry which is considered as the
best suitable means for making entry in foreign market. With the increase in globalisation factor,
more companies are encouraged to carry on their businesses across the global market so as to
gain more competitive advantage and profit (Giachetti, 2016). Through the thematic analysis of
entry strategies in emerging market as employed by most of UK companies such as Tesco, it can
be easily assessed that which entry mode will be beneficial for company in short as well as long
run. This research project will shed light on the benefits of entering into global market and what
challenges it has to face in competitive world to survive.
Significance of the study
After conducting the research study related to the entry strategies in the new emerging
market it can be assessed that it has provided significant benefits to the company such as Tesco
as well as the scholars in conducting their own activities. It has help company such as Tesco in
formulating various effective and efficient business plans and strategies which assist in smooth
functioning of business in making entry into the foreign markets. Company can design its
investment and financial decision process with the help of information provided in the study.
This can helps in elimination of risk factor associated with entry in emerging market. Further
more, the study will also support scholars and researchers in completing their research project

and study. Scholars can get brief summary from the research project for conducting hypothesis
and other research activities.
Literature review
Theme 1: Overview of globalization
As per Dau and et.al., (2017), globalisation in simple terms means integration of one
country's economy with the world economy. It is considered as an economic process which
involves integration as well as interaction among the companies, people, and government across
the world. Integration also involves goods, products, services, technology, economic resources,
capital resources and data. Thus, globalization is also involves the extension of social and
commercial relationship across the world economy. Globalization has increased because of the
factors such as improvement and advancement of the transportation and communication
technology which has lead to the growth of international trade, processes, ideas, and business
culture in the companies such as Tesco.
On the contradictory part Nikolova, Rodionov and Afanasyeva, (2017), argued that by
bringing globalisation in the economy, it is creating threat to the agriculture sector industry for
most of the developing and underdeveloped countries across the whole world. Djelic and Quack,
(2018), evaluates that because of globalisation process in the long run period has lead to the
increase in business trade and operations as a result of which the employment generation
opportunities has also increased for the public at large all over the countries which are involved
in this.
Stearns, (2016), identifies that globalisation has affected the world economy by inflation
caused in the market economy. The increase in the demand factor for necessities such as food,
water and energy etc. has lead to a sudden rise in the prices of various commodities making them
very expensive. The inflation in the food prices has affect millions of the world population which
are generally poor people at high risk. On this Cygler and et.al., (2018), said that, because of the
competitive pressures created on many companies such as Tesco in the world economy it has
provided improvements in the corporate as well as financial governance, provides better
protection to the labour class, increased awareness among consumers related to factors such as
income inequalities, climatic changes etc.

Theme 2: Different entry modes associated with globalization
Gorostidi - Martinez and Zhao, (2017), assess that the mode of entering in the emerging
market is influenced by a number of different internal as well as external factors such as type of
industry, government plans and policies, infrastructure conditions & facilities etc. Company such
as Tesco while entering into new market with new product launch should focus or considers
factors such as the current market trends and need, persisting level of competition, the
uniqueness of the product to be launched and attractive price value. The entry mode into new
market can be done through various options such as foreign direct investment, joint venture,
merger & acquisitions etc.
As per Meschi, Phan and Wassmer, (2016), Joint venture is the business entity which is
created by two or more parties having characteristics of shared ownership, returns and risk factor
and governance. Companies such as Tesco pursue joint ventures for following reasons such as
for accessing new market & emerging markets, for gaining efficiencies of scale by combining all
the business assets and operations, to share risk bearing factors of investments or projects, to
determine skills and capabilities. On this view point Bertrand and et.al., (2016), said that Joint
venture is a costly mode of entry for companies sometime. The aim of joint ventures is to
develop shared resources but companies emphasizes on development and protection its own
proprietary resources which brings management conflict.
Paul and Benito, (2018), also monitors that Foreign direct investment is another mode of
entering into the foreign market. Foreign direct investment is a process of making investment
either directly or indirectly with the help of Financial Institutions. It can be done by making
purchase of shares, property or any assets of the company. It is an investment strategy in the
form of making a control ownership in the business operations in one country economy by
another company such as Tesco in another country. The extent of foreign direct investment
allowed in a particular country depends on the government regulations and guidelines of the
same country in which investment is made. It is considered as the easiest mode of entry as
modification can be made at any point of time as per the conditions and opportunities prevailing
in the economy. On the other hand Zhang, Zhao and Ge, (2016), argued that making of foreign
direct investment will give low rate of return to company.
Lebedev and et.al., (2015), also identifies that Merger and Acquisitions can be one of the
way of making entry in the new emerging market. As with merger and acquisition provides quick

access to international market along with high market power with capturing competitive
advantages, acquiring new & better technology. It also helps in reducing the level of competition
for the company. On the contradictory part Xie and Li, (2017), said that merger and acquisition
adopted as entry mode in emerging new market brings cultural clash in the companies, which can
lead to failure. Sometimes when diverse product or service lines are brings together through the
process of acquisition, it can lead to issues or difficulties in the management of company's
business resources and operational competency.
As per the views of Bende - Nabende, (2018), Foreign direct investment provides huge
benefit from the perspective of company in form of access to the global market, resources,
technology as well as business processes. This also supports company in reducing the overall
cost of production of business and provides ease to deal with market fluctuation and competition.
On the other hand Donghui and et.al., (2018), argued that economy of any country is unstable
and unpredictable as it gets affected by market fluctuations very easily. Unstable political
systems can create negative impact on the performance of company as well. Also, one of
disadvantage of foreign direct investment is legal system of country in which investment is to
made.
Theme 3: Macro environmental analysis of Tesco
Song, Sun and Jin, (2017), PESTEL analysis provides detail about all the operating
challenges faced by Tesco Plc in the prevailing macro environment other than competitive
forces. PESTLE analysis of Indian (Bangladesh) retail industry is as follows:
Political Factors: Policies and regulations made by Indian government are changing
continuously. This in turn imposes threat in the front of company as changes need to be done in
current framework accordingly. However, FDI related policies will support the operations of
Tesco in the country like India.
Economic Factors – These factors mostly affects the leverage costs, demand, profits and
prices. Tesco should remain aware of changes taking place in the taxation policies or any other
factors thereby affecting the finance accessibility. Economy of India is developing and trying to
recover from the influence of recessionary condition occurred in 2008. Hence, this in turn place
direct as well as negative impact on customer’s purchasing power and thereby company’s
profitability as well.

Social Factors – Social factors such as attitudes, beliefs, values etc. affects the demand
as well as profitability aspect of Tesco. Nowadays customer are becoming more and more health
conscious which has led to change in the quality and development of new range products as per
the consumer demand. In the context of India, large number of customers do not prefer to buy
expensive products or services as they are highly price conscious in nature. Thus, in developing
countries like India (Bangladesh) firm can attain success only when it offers appropriate quality
products at discounted or lower prices.
Technological Factors - The advancements or changes in technology aspects has
provided numerous new opportunities for Tesco by making development and introduction of
online shopping facilities with home delivery, self-service checkout points. In India, now
shopping habits of customers shifted from traditional to online. Thus, by selling products or
services through online store company can maximize both sales and profitability. This has
provided convenience and ease to the customers thereby reducing the cost of labour. Also, Tesco
has make efforts by adopting Carbon footprint method for reducing pollution and saving energy.
Environmental Factors - Tesco has adopted carbon footprint method & committed to
reduce to 50% by the year 2020. Tesco has also made efforts in minimizing waste produced in
their stores by increasing and making customers social conscience. Hence, for attaining success
in emerging market like India Tesco is required to perform business activities in an eco-friendly
manner. Hence, company can attract more customers by laying emphasis on the aspect pertaining
to environment sustainability.
Legislative Factors - Government policies and legislations has directly impacted the
performance of Tesco. In India, for carrying out business operations smoothly Tesco is required
to comply with all the related laws & legislation namely health & safety, employment Act etc.
From the above literature review, it can be concluded that Tesco is one of the retail store
of UK which wants to expand its business operations across the globe because of globalisation
by using foreign direct investment as one of the entry mode and keeping in mind all the macro
environmental factors by way of conducting PESTEL analysis.
SWOT analysis of Tesco with respect to emerging country India
Strengths Weaknesses
 Low cost strategy negatively impact

 Diversified product range
 Superior technological usage
 Effectual supply chain network
profit
 Unavailability of highly skilled
workforce
Opportunities
 Company has opportunity to capture
high market share in India by offering
products at lower or discounted prices
 Further, option of online shopping will
also aid in the profitability and
customer base enhancement of firm.
Threats
 Changing customer’s preferences
 Stiff competition from supermarket
giants
Research methodology Research type: The basis of preparing research project is qualitative because with this the
study topic can be explained better with the use of relevant reasons, opinions, meaning
and motivations. It will also help in providing deeper insight in the problem or issues
coming in making research projects. It further helps in developing various ideas,
hypotheses and methods for conducting quantitative research. The qualitative research
helps researcher in assessing or evaluating feelings, behaviours, thoughts, attitude of
research participants. Research approach and philosophy: The research approach suitable for qualitative
research project is inductive in nature. This inductive approach of research project
provides deep observation and theory related to the data. Research philosophy is of two
types viz. Positivism and Interpretivism. Positivism philosophy deals with existing theory
for developing hypotheses. Data collection is limited and interpretation of data has to be
done in objective manner under this type. The philosophy used in completing research
project is Interpretivism provides better understanding of the research project as it relates

with all the values, ideas and thoughts used for making different interpretation along with
all ethical aspects. Interpretivism philosophy is best suited as it provides detailed
information about given topic. Data collection: The data for this research project is collected from both the primary as
well as secondary sources. Further the data will be collected with the help of secondary
source such as from books, journals, articles, statements etc. Questionnaire will be
prepared for collecting data from the managers of Tesco. Sampling: The method selected is Purposive sampling technique. It is a process of
collecting sample in form of non-probability sample by emphasizing on the
characteristics of the objective of the study as well as the population level. This method
helps in identification, selection and gathering of information relevant for conducting
study. With the help of Purposive sampling technique, 10 managers of Tesco have been
selected for survey.
 Data analysis: The data collected from primary and secondary sources are then analysed
for better understanding and interpretation. Concept of thematic analysis is used in
research project which will be based on different themes. These themes are prepared on
the basis of questionnaire and presented in the form of graphs for better and easy use.
These graphs will aid in decision-making process. Microsoft excel has been used for
making proper presentation as well as interpretation of the data gathered. Tables and
graphs are made for better understanding. All the numerical data are analysed with the
help of spread sheet excel & statistical tools such as mean, median etc.
Gantt chart / Timeline
Timeline
Activities /
weeks
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Research topic
selection
Drafting aims
and objectives
Developing brief
outline
Doing LR by
evaluating books

and journals
Identification and
selection of
research methods
Designing
questionnaire
including both
open and close
ended questions
Primary data
collection via
questionnaire /
survey
Arranging data in
a structured
manner
Analysing
gathered data
using thematic
technique
Concluding
findings and
giving
recommendations
for improvement
Doing formatting
Taking feedback
and doing
modifications
Final submission
P2. Research methodology Research Type: A research project can be prepared in form of Qualitative as well as
Quantitative. Qualitative research is scientific method of making inquiry, interviews,
surveys and observation which uses the unstructured data collection method to gather non
numerical data (Silverman, 2016). On the other hand, Quantitative research means
emphasizes on statistical, mathematical or numerical analysis of data which are collected
through polls, questionnaires or by manipulating using computational techniques the pre-
existing statistical data. Qualitative research form has been used by researcher in for
conducting research study in assessing the entry strategies by Tesco in the new emerging
market.

 Research Approach: The research approach is of two types i.e. Inductive Research
Approach and Deductive Research Approach. Inductive one deals with generation of new
theories which are emerging the data gathered while Deductive research approach is
considered as testing and aimed theory. The study of this research project done by
researcher has been Inductive in nature as it has been used in developing theories and
identifying themes by making studying of the documents, recordings etc. This has helped
researcher as it usually makes use of research questions to narrow the scope of study of
entry strategy in new market by Tesco. Research Philosophy: It is of two types one is postivitism and another is interpretivism
method of research philosophy. Positivism philosophy deals with the positive knowledge
which is based on natural phenomenon along with their relations and properties. While
interpretivism philosophy focus is on social science which opposes the concept of natural
science (Antwi and Hamza, 2015). This research study is based on interpretivism
philosophy as it has been providing qualitative research report in preparation to sacrifice
reliability and representatives a high level of validity. Data Collection: It refers to the process of collecting, gathering, evaluating and
measuring the information which the help of targeted variables factors in a manner of
established system which enables in answering the relevant questions of one and thus
helps in evaluating outcomes. Data can be collected from both Primary and Secondary
sources. Primary data is the data which is collected for first time by the researcher itself.
Secondary data deals with collections of data or information which is already been
collected by primary sources and is available in Books, journals, articles, newspaper and
on websites. The researcher has been using both sources of data collection for conducting
its research study. Questionnaire has been prepared to be asked from the managers of
Tesco. Sampling: It is the method of collecting or taking a suitable sample for making some
analysis or interpretation. Sampling can be done in two ways i.e. Probability sampling
and Non probability sampling. The probability sampling refers to the sampling technique
in which sample are gathered or collected from large size of population by using method
which is based on the probability theory. While non probability theory of sampling deals
with the sampling technique in which the samples are collected in a form of process

which does not give every individual equal chance of being selected in the population.
The researcher has been using Purposive sampling technique for assessing the entry
strategy of Tesco in the new emerging market. As purposive method helps in the
identification and selection of information or data from 10 managers of Tesco, which has
been related to the phenomenon of interest or study topic. Data Analysis: Data analysis is one of the most important aspect of research project.
After collecting data, it is very important to make accurate and correct interpretation of
data for further use which can be done with the help of Thematic analysis and SPSS
analysis method. SPSS analysis is helpful in quantitative research by managing and
evaluating statistical information gathered by researcher. On other hand, thematic
analysis is best suited for qualitative research project as it deals with different themes
prepared on the basis of questionnaire (Braun and et.al., 2019). The researcher has been
using thematic analysis for conducting study and preparing description on the entry
strategies adopted by Tesco in the emerging market. Research Limitations – For conducting this research, researcher has faced some
accessibility issues. Due to this, researcher has made use of articles, statements and other
information by internet in completing its research study. The research project is based on
qualitative research technique because of short time period. Sampling method has also
been used for completing this research study.
 Access negotiation or ethical aspects: As per this, ethical forms will be sent to the
selected 10 managers of Tesco for taking prior permission regarding survey. This in turn
reflects that participants participated in survey as per their wish without any compulsion.
Questionnaire
Name:
Age:
Income:
Years of employment:
Q.1 Do you agree that globalization offers opportunity to the firm in relation to sales and profit
maximization by taking entry in emerging market?

 Agree ()
 Strongly agree ()
 Neither agree nor disagree ()
 Disagree ()
 Strongly disagree ()
Q.2 Do you agree that globalization facilitates enhancement in the customer base of Tesco?
 Agree ()
 Strongly agree ()
 Neutral ()
 Disagree ()
 Strongly disagree ()
Q.3 At the time of making selection of entry strategy which aspect we need to consider?
 Dilution of control ()
 Cost ()
 Government regulations ()
 Market size and growth
 Competition level ()
Q.4 According to which method is most suitable for entering in emerging market as India?
 Joint venture ()
 Merger ()
 Acquisition ()
 Franchising ()
Q.5 Kindly specify entry mode which assists in getting high economies of scale?
 Joint venture ()
 Merger ()

 Acquisition ()
 Franchising ()
Q.6 Do you think that Tesco should consider brand image of proposed firm while taking decision
in relation to merger, acquisition or joint venture?
 Yes ()
 No ()
Q.7 Kindly recommend innovative strategies for entering in emerging market if you have
any……………
LO 2
P3.Conducting primary & secondary research project considering costs, access & ethical issues.
 Cost consideration: For conducting this research study, researcher has to incurred a
reasonable amount of cost expenses. For completion of every research project, researcher
is required to incurred some cost expenses in gathering or collecting data and information
which is non numerical as required in qualitative research. But for conducting this
research study, there is no high cost incurred as the study is based on qualitative research
rather than quantitative research. Accessibility issues: During the preparation of research project, various types of
accessibility issues has been faced by the researcher and scholars in conducting research
study on strategies of entering in the merging market by Tesco. Issues during conducting
research are related to accessing data base because of private account of researcher by
denying the public access, password protected, sometime ask for subscription and is
accessible only by few web page members. As a result, many keywords such as
Globalisation, Merger and Acquisition, Joint venturers etc. are used for the purpose of
completing the research project as well as research study on Tesco.
 Ethical aspects: For conducting this research study, all the ethical aspects, norms and
principles has been followed by the researcher and scholars. It is very important to
follows ethical guidelines for successful completion of research study. Researcher has
been adopted ethical factors by ensuring that the data and information collected and
gathered for research has been rephrased totally. No data or information used in

preparation of research project is fully copied and paste as it is from the different website.
Also, the contest form has been filled correctly and properly by respondents with the
purpose of willingly participation in the research study.
P4. Data analysis and findings
Theme 1: Globalization offers opportunity to the firm in relation to sales and profit maximization
by taking entry in emerging market
Particulars Responses % of responses
Agree 4 40.00%
Strongly agree 3 30.00%
Neutral 2 20.00%
Disagree 1 10.00%
Strongly disagree - 0%
Total 10 100%
From the above study, it can be concluded that 40% respondents agrees that globalization
offers an opportunity to the business firm in relation to the sales value and profit amount
maximization by taking entry in the emerging market. Globalisation helps in interaction and
Agree Strongly
agree
Neutral Disagree Strongly
disagree
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
40.00%
30.00%
20.00%
10.00%
0.00%
% of responses

integration of our country's economy with the worlds' economy. This makes an ease for
companies such as Tesco to enter into the international market for conducting their business
operations and activities across the globe (Woo, O'Boyle and Spector, 2017). On the other hand,
20% out of 100 are having neutral thoughts regarding the concept of globalisation in emerging
market benefits. Thus, it can be said that globalisation has impact on the sales revenue and profit
margins of various company by seeking competitive advantages and opportunities as and when
they arise.
Theme 2: Globalization facilitates enhancement in the customer base of Tesco
Particulars Responses % of responses
Agree 2 20.00%
Strongly agree 3 30.00%
Neutral 3 30.00%
Disagree 1 10.00%
Strongly disagree 1 10.00%
Total 10 100%
Agree
Strongly agree
Neutral
Disagree
Strongly disagree
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
20.00%
30.00% 30.00%
10.00% 10.00%
% of responses

As per the study, it can be analysed that globalization has facilitates in the enhancement
of the customer base of Tesco company. 30% are strongly agreeing with the fact while 30 % are
having neutral thoughts related to the benefits of globalisation in fostering customer base of the
company like Tesco (Cassia and Magno, 2015). Company should always focus on employing
those business strategies, plans and resources in their business operations and activities which
emphasizes on increasing the satisfaction level of its customer thereby increasing the profit and
sales margins in a very cost effective manner. When the needs of customer are met, it leads to
increase in the customer demand and retention. With the help of globalisation it has lead to the
extension of social and commercial relationship of company across the world economy.
Theme 3: Government regulations, market size and growth need to be considered at the time of
making selection of entry strategy
Particulars Responses % of responses
Dilution of control 2 20.00%
Cost 3 30.00%
Government regulations 2 20.00%
Market size and growth 1 10.00%
Competition level 2 20.00%
Total 10 100%

From the above case, it can be assessed that it is very important to consider all the
government policies, guidelines, principles and regulations before making of business strategies
and plans related to the entry in the new emerging markets. Also, the market size and growth
needs to be consider at the time of making selection of entry mode in the international market.
Before making entry into international market, the cost of carrying on business operations in the
international market should be determined (Williamson, 2015). It is very important that company
such as Tesco should have a minimum cost of operations and production and maximum value of
firm. Conducting business at a cost higher than profit earning capacity can bring company in a
situation of low liquidity position.
Theme 4: Merger and acquisition method is the most suitable for entering in emerging market in
India
Particulars Responses % of responses
Joint venture 2 20.00%
Merger 3 30.00%
Acquisition 3 30.00%
Franchising 2 20.00%
Total 10 100%
Dilution of
control
Cost Government
regulations
Market size
and growth
Competition
level
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
20.00%
30.00%
20.00%
10.00%
20.00%
% of responses

As the study defines that the best suitable method for entering in the emerging market in
India and any other country's economy is merger and acquisition method. 30% are agreeing with
the same fact of making entry with the help of merger and acquisition in the emerging market.
For companies such as Tesco, merger and acquisition helps in providing a quick access to the
international and most emerging market of the world by ensuring them high market power and
market share (Yılmaz and Tanyeri, 2016). This can be done by seeking all the competitive
advantages and opportunities as they arise, acquiring new & better improved technological
factors. With the help of merger and acquisition as an entry mode, reduction in the level of
competition is there for company so as to earn more profit.
Theme 5: Merger and acquisition entry mode assists in getting high economies of scale
Particulars Responses % of responses
Joint venture 2 20.00%
Merger 3 30.00%
Acquisition 3 30.00%
Franchising 2 20.00%
Total 10 100%

With the help of above analysis, it can be assessed that merger and acquisition as the
entry mode assists in getting the high economies of scale to company like Tesco. 30% agrees
with merger and acquisition as mode of entry. When company is engaged in the production
function of more units on the large scale with the fewer input costs then it leads to achievement
of economies of scale (Brueller, Carmeli and Markman, 2018). This can be said that as a
company grows and increase its production units, there is a chance to decrease its costs of
production and brings in operational efficiency. With merger and acquisition, the competition
level between companies reduces in the market which brings better opportunities to grow and
develop across the globe in a cost effective manner.
Theme 6: Tesco should consider brand image of proposed firm while taking decision in relation
to merger, acquisition or joint venture
Particulars Responses % of responses
Yes 7 70.00%
No 3 30.00%
Total 10 100%
Joint venture Merger Acquisition Franchising
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
20.00%
30.00% 30.00%
20.00%
% of responses

As per the study made, it can be concluded that Tesco should consider brand image while
taking decision in relation to merger, acquisition or joint venture as an entry mode in the
emerging market. Out of 10, 7 are having favourable opinion that brand image is considered as
an important factor when entering in the new emerging market. When a company is having a
brand image, it is very important to maintain the decorum of goodwill, market position in the
market where it is operating for meeting the expectations of its customers (Zhang, 2015). On
satisfaction, customers will become loyal towards the company i.e. it will create brand loyalty.
This will lead to high profitability and market share, high customer retention and improvement in
the performance level of company.
LO 3
P5.
Enclosed in PPT
Conclusion
From the above study it can be concluded that proper strategy should be made for making
entry in the emerging market. A sound and effective business plans and strategy can help
companies in acquiring the current market & business opportunities along with the competitive
advantage. Strategies and plans should be designed in line with the business goals and objectives
of the company. The reasarch project is on Tesco, which is a British multinational groceries and
Yes No
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
70.00%
30.00%
% of responses

general merchandise retailer store. Tesco basically deals in wide range of products and services
such as books retailing, clothing, electronics, petrol, software, financial and internet services,
telecoms etc. Company is thinking of entering into the emerging market by using various mode
such as Merger and Acquisition, Joint Venture and Foreign direct investment. As per the
questionnaire prepared, 6 out of 10 says that merger and acquisition method is the most suitable
mode for entering in emerging market. It helps companies such as Tesco in achieving market
share and power by reducing the level of competition in the market. Also, merger and acquisition
entry mode assists in getting high economies of scale is supported by 60 %. Merger and
Acquisition can help Tesco in focusing on providing diversification in variety of its product and
service to its customer which will increase its customer base as well as profit margins. Also, by
way of PESTEL analysis, Tesco is able to determine all it macro environmental factors which is
going to impact its business performance & operations and growth level.
Recommendations
 From the above research study it can recommend that for making entry in the emerging
market, it is very important to found an appropriate market as per the business operations
of the company.
 The very next step after founding appropriate market if to select the best possible mode
of entry. Company such as Tesco should formulate entry strategies and plans which helps
in attainment of business goals and objectives effectively and efficiently.
 The entry mode chosen by company helps in determining the investment environment,
operation treatment, resource commitment and evolutionary path of a company.
 Company can also make efforts in providing high as well as medium price products and
services for meeting the customer requirements of every standards people.
 Also, by formulating new, sound and effective business strategies and policies Tesco can
make plan of entering into different market segments by assessing all the micro as well as
macro environmental factors of that country.
As per the study, Merger and Acquisition is recommended as the best suitable mode for
Tesco for entering in the emerging market. It is because of following factors:

 It provides immediate access to new emerging market with better improved capacity,
technology, people, knowledge and operational systems so as to take company's goods
and services to the new market.
 It helps in bringing diversification in product and service which are offered by company.
 It facilitates increase in the operational capacity of plants and machinery by utilizing the
operational expertise of new emerging market.
 It fosters on acquisition of high market share by Tesco in the new market.
 It also emphasizes on research and development factor and reduces the level of
competition between companies.
LO 4
P6. Reflection
Being a researcher, the research report is being prepared on the entry strategy as adopted
by companies like Tesco in the emerging market. The research report is prepared on Qualitative
research methodology rather than using Quantitative methodology of research. As the Qualitative
research methodology focuses on gathering or collection of non numerical data where as
quantitative research methodology uses numbers and statistical data for preparation of research
project therefore, qualitative research methodology is considered as most effective means.
Further, the research study has used purposive sampling technique as it helps in the assessment
and selection of data which is related to the phenomenon of study topic. It lays emphasis on the
main characteristics of study topic. Furthermore, thematic analysis has been used in preparation
of research project as it deals which different themes prepared on the basis of questionnaire.
Thematic analysis is considered as best suitable for qualitative research because it is supported
by tables, graphs, bar charts along with detailed interpretation of them.
P7. Alternative research methodology
In the upcoming time period, researcher can frame or formulate more hypothesis and
theories on the study topic of assessing entry strategy by company such as Tesco in the new
emerging market. This hypothesis will help other scholars, researchers in conducting of their
research projects and study as well as their successful completion. The research study on impact
and benefits of globalisation in Indian or other economy context can be further studied for better
understanding. Also, research can be conducted on more people for more collection and

gathering of data or information both numerical as well as non numerical for completion of the
quantitative research.

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